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Minimize risk, maximize profit and ride a trend

  • #101
  • Nov 22, 2021 2:33am Nov 22, 2021 2:33am
The account equity jumped up as Nasdaq and SP500 moved up recently. +130% up since the beginning of this thread and I am not even trading actively...

That is the beauty of building equity. I hope you are enjoying the ride.
  • #102
  • Nov 22, 2021 2:52am Nov 22, 2021 2:52am
I spent a lot of time with other traders recently as it is my hobby to trade and share ideas. I am still surprised how this world of trading is oftentimes a game of the ego of traders.

Trading is not difficult and it does not require any special skills. But it requires humility because the market can change opinion anytime and your results can drastically change. In my opinion, traders with huge egos will burn down because they consider their success to their skill. Definitely, there must be a skill not to lose money but luck is also part of the equation.

I started to build positions on this test account at the beginning of October. The forex market was not giving me huge movements but indexes did. So I could make money on indexes. If indexes did not move either I could not make money, or at least not that much. So it was made mostly because of luck and the current situation.

You can make everything right and not make money and you can make everything wrong and still make it because of luck.

Get advantage of the movements that are happening now, enjoy it and consider it luck that markets are moving crazily and keep your ego down.
  • #103
  • Nov 22, 2021 8:42am Nov 22, 2021 8:42am
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At the moment I am holding only indexes and there are still two trades on AUDNZD. Following a weekly bars, I decided to keep it open as I believe that price could go up. If it goes down I'll take a loss.

As there is not much margin left and I can only open a position when I am in decent profit I do not follow any FX pairs for now. It is very convenient because I had not to open MT4 on PC for weeks.
  • #104
  • Nov 22, 2021 12:07pm Nov 22, 2021 12:07pm
A lot of positions i had died at BE some at a loss and very few survived. Some of the surving ones i closed to bring the equity up a little.
MTN
  • #105
  • Nov 22, 2021 3:17pm Nov 22, 2021 3:17pm
Quoting AdamO.
{image} At the moment I am holding only indexes and there are still two trades on AUDNZD. Following a weekly bars, I decided to keep it open as I believe that price could go up. If it goes down I'll take a loss. As there is not much margin left and I can only open a position when I am in decent profit I do not follow any FX pairs for now. It is very convenient because I had not to open MT4 on PC for weeks.
AN has about 650p in it , as long as it follows the same pattern it has created for the last 6y......
EG is in a similar position, another 690p.....
EU has around 350p...

Of course, it is all speculation.......
Stay green!!!
  • #106
  • Nov 22, 2021 3:41pm Nov 22, 2021 3:41pm
Quoting Froggy
{quote} AN has about 650p in it , as long as it follows the same pattern it has created for the last 6y...... EG is in a similar position, another 690p..... EU has around 350p... Of course, it is all speculation.......

I have started to build EG on my trading account (not the test one showing here). It seems to be a good opportunity as it holds for years. Let's see how it goes. Are you buying it too?
  • #107
  • Nov 22, 2021 4:00pm Nov 22, 2021 4:00pm
Quoting AdamO.
{quote} I have started to build EG on my trading account (not the test one showing here). It seems to be a good opportunity as it holds for years. Let's see how it goes. Are you buying it too?
Yes I am, but it may drop further 100p before it turns around... So hang tight! LOL
Stay green!!!
  • #108
  • Nov 26, 2021 11:55am Nov 26, 2021 11:55am
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MTN
  • #109
  • Dec 9, 2021 4:20am Dec 9, 2021 4:20am
Hi AdamO, thank you for your efforts in sharing your journey.
I read pipeasy's thread again last month, and I'm glad to have found your thread to actually see someone doing it live following his principles (with your own personal touches).

I came across pipeasy's thread for the first time 3 years ago and it also made immediate sense to me.
But after 3 years of trying, with several pauses in between, I'm still nowhere.

You mentioned in one of your posts that we should stop predicting what price will do, and I think you're exactly right.
I've been looking into trading systems, entry strategies,... for something that would give me confidence (because the math would back it up).

In the end I just keep over-analysing everything. So I guess you could say I have analysis paralysis.

I'm really willing to get in there and just enter and participate in the market, but something in my brains is preventing me to do that.
I quickly drift away in creating a new version of my UI 'to make it easier to trade', coding some EA's that will automatically send me the desired entry signals,...
But it keeps me away from the actual trading.

Did you encounter something similar, and how would you overcome that?

It sounds so stupid when I think of it, and now that I'm writing it, because it's even just a demo account.
  • #110
  • Dec 30, 2021 5:48am Dec 30, 2021 5:48am
Early days, but I would like to thank AdamO for starting this thread.
Known of the millipede concept but was never able to find a framework to execute the trades.

AdamO's idea of using the weekly as a guide and 4H for entries set me up to think of how I could trade this in a long term manner.

10 days in, here are the results on a small live account.

Start: USD530
Balance: USD449 (-15%)
Equity: USD636 (20%)

Started it as a test before putting in more balance, but the tricky thing emotionally is how to withstand a drawdown with a larger account.
Will be playing this out over the next few months.
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  • #111
  • Dec 30, 2021 10:36am Dec 30, 2021 10:36am
That's not a bad start indeed!
As you say it yourself, coping with the moments of a larger drawdown might be the biggest challenge.

Do you use the entry method shared by AdamO, or do you have on of your own.

Good luck with your effort!
  • #112
  • Jan 3, 2022 1:52am Jan 3, 2022 1:52am
Quoting krisch
That's not a bad start indeed! As you say it yourself, coping with the moments of a larger drawdown might be the biggest challenge. Do you use the entry method shared by AdamO, or do you have on of your own. Good luck with your effort!
Millipede fellow usually use simple price action explained in peter crown and james16 thread . The profit came from 3-5% positions that survived and can last months even years . To have better equity curve , diversification must be taken,with smaller profit than longer term . Its great system .
20 -30 positions can be taken every weeks,yet only 1.7/week that can survived long term . Others died at BE or small loss.
Its been a while since adamo updated this thread , trend seems happening in jpy pair and few others now in forex.
  • #113
  • Jan 3, 2022 2:33am Jan 3, 2022 2:33am
Quoting krisch
That's not a bad start indeed! As you say it yourself, coping with the moments of a larger drawdown might be the biggest challenge. Do you use the entry method shared by AdamO, or do you have on of your own. Good luck with your effort!
happy new year all!

Hi Krisch, I distill it to simple price action with moving averages to gauge where price might go next few candles.
Entering on 4H with weekly as a guide.

Here's an update:

Balance: USD469 (should be USD439 but a fat finger trade 1 lot yielded USD30 of profits which i quickly closed)
Equity: USD710 (+33%)

Rightly pointed out by indosupre, trend in JPY pairs and a couple others.

I focus on engaging in as many pairs as possible, hence entry method has to be simple as possible to reduce decision making.
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  • #114
  • Jan 3, 2022 6:47am Jan 3, 2022 6:47am
Quoting krisch
Hi AdamO, thank you for your efforts in sharing your journey. I read pipeasy's thread again last month, and I'm glad to have found your thread to actually see someone doing it live following his principles (with your own personal touches). I came across pipeasy's thread for the first time 3 years ago and it also made immediate sense to me. But after 3 years of trying, with several pauses in between, I'm still nowhere. You mentioned in one of your posts that we should stop predicting what price will do, and I think you're exactly right. I've been...

Hi Krisch,

sorry for very late reply.

Of course, I have experienced every possible temptation to change my approach, I tried to make it as easy as possible. But now, it is very easy. You can even follow your TFs and check it once a day. Even if you had an EA running you would be checking more often. It makes perfect sense to automate your entry but you won't save much time.

I would suggest that you start trading it. Because it looks easy on paper but you need to hold positions and they sometimes die. You can see huge profits to disappear quickly.
  • #115
  • Jan 3, 2022 6:50am Jan 3, 2022 6:50am
Quoting yieldplay
{quote} happy new year all! Hi Krisch, I distill it to simple price action with moving averages to gauge where price might go next few candles. Entering on 4H with weekly as a guide. Here's an update: Balance: USD469 (should be USD439 but a fat finger trade 1 lot yielded USD30 of profits which i quickly closed) Equity: USD710 (+33%) Rightly pointed out by indosupre, trend in JPY pairs and a couple others. I focus on engaging in as many pairs as possible, hence entry method has to be simple as possible to reduce decision making. {image}

Hi yieldplay,

well done. I think you have mastered first half of the method. Entering in the direction of the trend. Now you need to find a way how to close profits so you feel comfortable.
  • #116
  • Jan 3, 2022 6:54am Jan 3, 2022 6:54am
Once you are able to manage the account and grow it for at least six months let me know and I could back you up financially. I find trading a boring activity now so I prefer to focus on other activities but I'd be very glad to help traders to succeed as I know it can really change your life.
  • #117
  • Jan 3, 2022 7:07am Jan 3, 2022 7:07am
Quoting krisch
That's not a bad start indeed! As you say it yourself, coping with the moments of a larger drawdown might be the biggest challenge. Do you use the entry method shared by AdamO, or do you have on of your own. Good luck with your effort!
Drawdowns are not high using this method if you keep your positions low and do not overtrade. The biggest challenge is to see your huge profits to disappear. I have tried for years to optimise it but there is no a correct way of doing it. If you prefer taking smaller profits but more often, just do it. If you prefer huge profits from time to time, just do it.

I prefer taking profits after around 200 pips per trade so I do not lose that much when market reverses. But it is just my personal preference. PipEasy preferred keeping the position as long as possible. I prefer PipEasy's approach for stock indexes as they tend to grow for very long periods of time.

I think that you get the main idea of this method and it must be personalised so it fits your personality.
  • #118
  • Jan 3, 2022 7:26am Jan 3, 2022 7:26am
Feel free to share your trades also to telegram group I have just created. Link in my profile.

I can comment your trades from time to time. I do not plan to post my trades there at the moment.
  • #119
  • Jan 3, 2022 9:46am Jan 3, 2022 9:46am
Quoting AdamO.
Feel free to share your trades also to telegram group I have just created. Link in my profile. I can comment your trades from time to time. I do not plan to post my trades there at the moment.
cheers, have just requested to join
  • #120
  • Jan 3, 2022 1:34pm Jan 3, 2022 1:34pm
Quoting AdamO.
{quote} Hi Krisch, sorry for very late reply. Of course, I have experienced every possible temptation to change my approach, I tried to make it as easy as possible. But now, it is very easy. You can even follow your TFs and check it once a day. Even if you had an EA running you would be checking more often. It makes perfect sense to automate your entry but you won't save much time. I would suggest that you start trading it. Because it looks easy on paper but you need to hold positions and they sometimes die. You can see huge profits to disappear...
You're absolutely right, I just have to get started and stop finding excuses. :-)

I do wonder how you manage to stack positions. Can you maybe explain that a bit more?
When relying on a signal to enter a trade, requires those perfect conditions. And that probably means there's maybe just 1-2 entries in a favorable trend (within that 1 TF).
And if I understand it right, we want to have several positions to maximize the return.
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